CHINA CHAIRMAN BANGGUO TO VISIT; SIGN MAJOR

C O N F I D E N T I A L NASSAU 000526

SIPDIS

STATE FOR WHA/CAR DESK OFFICER JOCELYN MACK-WILSON

E.O. 12958: DECL: 09/01/2019
TAGS: BF ECON EFIN ETRD
SUBJECT: CHINA CHAIRMAN BANGGUO TO VISIT; SIGN MAJOR
ECONOMIC AGREEMENTS WITH THE BAHAMAS

REF: A. NASSAU 180

B. NASSAU 041

C. NASSAU 107

D. NASSAU 493

E. EMAIL AUGUST 20 MACE-DUBEL

Classified By: Charge d'Affaires, a.i., Zuniga-Brown for reasons 1.4(b)
and (d).


1. (U) China,s Chairman of the Standing Committee of the
National People,s Congress and the country,s second-highest
ranking party officer, Wu Bangguo, will make an official
visit to The Bahamas September 3-6 to sign three major trade
and investment agreements with the GCOB. These agreements
include an investment promotion and protection agreement, a
loan framework agreement through the Chinese Exim Bank for
the construction of a highway to the international airport in
Nassau and an economic and technical cooperation agreement
for the construction of the national stadium. Bangguo is the
highest ranking Chinese official ever to visit the Caribbean
and will bring with him a delegation of over 150 people,
including Chinese Ambassador to The Bahamas Hu Dingxian and
18 journalists. The high-level visit will include courtesy
calls on Governor-General Hanna, Prime Minister Hubert
Ingraham, President of the Senate and Speaker of the House of
Assembly.


2. (C) Ministry of Foreign Affairs officials noted that some
of the agreements, such as one pertaining to the national
stadium, had been under negotiations for some time. However,
the investment promotion and protection agreement, which
addresses the &conditions for creating, stimulating,
encouraging, promoting, improving and protecting investment
by Bahamian and Chinese investors8, is relatively new. There
has been no further public discussion of possible Chinese
Exim Bank financing of the Baha Mar Resort project in Nassau
(Ref A). The Chinese Deputy Chief of Mission Yijian Li
recently told PolChief that ongoing discussions with the GCOB
concerned the Chinese request to bring 4000 plus workers to
participate in the construction of the project. Li noted
that the GCOB has been clear that it has serious reservations
about such a high number of foreign workers, especially
during the current economic conditions.


3. (U) The delegation will travel to Phoenix, Arizona on
September 6. On August 17, the Chinese Embassy requested the
Chairman and his delegation, together with their baggage be
exempted from security checks and receive appropriate
courtesies when they go through formalities for entry into
U.S. from The Bahamas(Ref D). The Department advised Post by
email that US Customs and Border Protection (CBP) and State
Department Protocol will meet and clear the aircraft upon
arrival in Phoenix (Ref E). US CBP Nassau will not pre-screen
the aircraft or passengers in Nassau.


4. (C) COMMENT: This high-level visit continues to illustrate
the increased presence and financial investment by the
Chinese government in The Bahamas. In addition to the
national stadium, which is already under construction, there
are plans to build a new Embassy compound, renovate the
Ambassador,s residence, fund road improvements and possibly
provide almost USD 3.2 billion towards the Baha Mar project.
They have also initiated university scholarships and opened a
Confucius Classroom at the College of the Bahamas. The
Chinese firm, Hutchinson Wampoa, owns half of one of the
largest transshipment ports in the world and the
international airport both located in Freeport, Grand Bahama
(Ref B). While it is unclear what affect these investments
will have on the long-term relationship between China and The
Bahamas, the sizable Chinese capital investments during the
current economic downturn have bought considerable goodwill.

ZUNIGA-BROWN